What is the Age Limit for Car Finance?

The Minimum Age for Car Finance in the UK is EIGHTEEN

You’ll have to wait until 18 to get a car loan. However, there is no upper age limit for taking out car finance.

Millions of drivers of every age want to finance a car, and there are plenty of options for young people, retirees and pensioners who might want to finance a vehicle, even those with bad credit.

Is there a maximum age for taking out car finance?

There is no age limit on taking out any car finance. Some lenders may apply a maximum age, but many don’t.

Young Drivers can Legally get Car Finance from 18

You might ask why I can pass the driving test at 17 but have to wait until 18 to get car finance. Unfortunately, by law, signing any finance agreement, including car finance, does not apply until your eighteenth birthday.

A crucial part of getting approval for car finance is your credit rating which young people can tend to neglect. We advise you to start knocking your credit score into shape as early as possible, and this will improve the likelihood of getting car finance when you meet the minimum age requirements.

  • Get on the Electrol Register.
  • You can apply for an adult bank account from 16.
  • Save money for a car deposit – an upfront payment helps your chances of getting finance.
  • Start budgeting, and you could consider getting a part-time job.

Can I get Car Finance if Retired or on a Pension?

Is car finance available when you are retired or a pensioner? Yes, of course, as long as you meet the criteria of a consistent income.

Suppose you have retired early from your career. You might want a new or more reliable vehicle than you already have. However, you don’t want to touch your savings to buy the car, so you take out a car finance agreement as a retiree.

Car finance is a solid option if you still have a reasonable monthly income. Spreading out payments over a few years might appeal more than digging into your cash reserves.

Pensioners can still apply for car finance. You will get accepted if you have a decent credit rating and can afford the loan. There is no upper age limit to taking on car finance.

Many older people buying a car have high credit scores that are enough for lenders to offer lower interest rates than those provided to borrowers with lesser credit histories.

How do I access my Income?

As a retired person, you still have an income. Your pension, interest from savings, or maybe you have a part-time job. All of these are included in your Income.

Does age affect the type of car finance contract?

No. There is no age limit on taking out any car finance, including the most popular options of HP and PCP finance deals.


There are no age restrictions for getting car finance apart from the minimum age of 18 by law. Credit score, credit history, and affordability (financial status and income) matter to car finance lenders. For you, the lowest interest rate you can achieve is foremost.